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Freight shipping cost

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Posted by MP173 on Thursday, July 28, 2022 1:54 PM

Greyhound:

CSX doesnt offer 24 hour service between Chicago and NJ except for the UPS 1x weekly to meet 4th day service (CA - NYC).  However, they do get close with their premium service trains:

Eastbound:

I4 - Depart Bedford Park 1825

       New Jersey              2200

I10 Dp Bedford Park        0645

      New Jersey               0800

Westbounds:

I3  Dpt New Jersey          0515

     Bedford Park              0700

I9  Dpt New Jersey          2015

     Bedford Park              0100

If i were trying to maximize revenue, I would delay I departure a couple of hours to be able to handle LTL trailers out of Chicago and still have a midnight arrival in NJ.  However, I 4 is usually a massive train as it is, with heavy Amazon containers (today 46).  Real heavy Schneider and JBH plus rail pool containers.  Todays train had 277 containers, almost all domestic.  By contrast today's I10 had only 71 containers/trailers with 13 branded UPS containers/trailers and 1 Amazon.

CSX I168 handles the international containers between Chicago and NJ Port - today's had 214 all international containers.

ed 

 

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Posted by Backshop on Thursday, July 28, 2022 1:19 PM

It must be sad to have "marketing" as a hobby.

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Posted by azrail on Thursday, July 28, 2022 10:52 AM

YRC has combined a lot of their trucking brands under the Yellow brand.

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Posted by Backshop on Thursday, July 28, 2022 9:49 AM

Thank you Jeff and MP173 for correcting me.  Here in the Midwest, the major LTL players seem to be FDX, XPO and Old Dominion.  Holland, R&L and Saia are also up there.  I almost never see YRC.

PS--I know that Holland is owned by YR, but it's operated separately under their regional branch.

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Posted by greyhounds on Wednesday, July 27, 2022 9:45 PM

Backshop
First, I'm not the "operating department".  Second, all you have to do is look at what UPS charges per package vs what an LTL carrier charges per pallet.  UPS is a premium service.  You need to leave the 1980s because Yellow is only a bit player anymore and has been for years.  

Whoops, there it is.
 
The second level of resistance to rail market development beyond “It Won’t Work” is: “You Don’t Know What You Are Talking About.”
 
I specifically named Yellow and FedEx.  And I got told I’m living in the 1980s because I mentioned Yellow. 
 
Well, FedEx is by far the largest LTL carrier.  (I did cite them.) But, in the year 2020, Yellow was 2nd.  They just ain’t no “Bit Player.”
 
 
And I did say “ETC.”  So, there’d be more customers.
 
People just throw anything they can against the wall, including lies, to stop innovation. They seem to be threatened by it.
 
You give some good railroad marketing folks reliable 24 hour schedules between Chicago and New York (Bergan) and they’ll own that business.

And it doesn’t have to be limited to LTL.  If the train is going, load it up with revenue.  Imports westbound. Steel, meat, breakfast cereal, whatever, eastbound.

 

As to UPS being a “Premium Service.”  That’s a Red Herring.  In a competitive market, and that’s what this is, your competition sets your price.  If they’ll do it for $1.00 you can’t charge $1.05.  If UPS could truck their packages between Chicago and New York for less than the rail charge, that’s what they’d do.

 

It flat out doesn’t matter what UPS charges their customers to move packages. It’s what they pay to move the packages that counts.  It’s the same with every other pound of freight.  There’s a required service level at a price. 

 

"By many measures, the U.S. freight rail system is the safest, most efficient and cost effective in the world." - Federal Railroad Administration, October, 2009. I'm just your average, everyday, uncivilized howling "anti-government" critic of mass government expenditures for "High Speed Rail" in the US. And I'm gosh darn proud of that.
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Posted by SD60MAC9500 on Wednesday, July 27, 2022 8:15 PM
 

MP173

 

Does anyone know if the FedX containers handle the Fedx ground parcels, or is that a separate unit competing vs JBH, etc?

 

 

They do now. With the consolidation of FedEx's divison's. FedEx Ground now has access to their Multimodal 53's.

 
Rahhhhhhhhh!!!!
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Posted by MP173 on Wednesday, July 27, 2022 9:31 AM

YRC, while it has issues, is not a bit player.  Yes, the old Yellow and Roadway systems were power houses, but YRC still has 300 LTL terminals.  The Holland and New Penn systems are important regional systems.

I see quite a few YRC trailers on premium intermodal trains.  

Years ago Fred Frailey (I believe) had an outstanding article on the tiered pricing/service levels of Santa Fe intermodal trains (perhaps BNSF trains).  It would be of interest to see a followup article, not by Fred as he has retired, but by a knowledgeable reporter.

Amazon is shipping considerable containers now on certain trains...today's CSX Q3 had 38 Amazon containers and 26 UPS trailers/containers.  Didnt see any FedX units.

Does anyone know if the FedX containers handle the Fedx ground parcels, or is that a separate unit competing vs JBH, etc?

Read recently that Amazon will enter than truckload container market.

Ed

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Posted by jeffhergert on Wednesday, July 27, 2022 12:09 AM

I see a lot of FedEx and Yellow/Roadway trailers on the same Z trains that carry the UPS trailers. Often there are more of the former two than the UPS trailers.  I doubt though that they have the same contract provisions.

We've always heard that UPS has guaranteed delivery times, or there are monetary penalties involved.

Jeff

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Posted by Backshop on Tuesday, July 26, 2022 4:25 PM

greyhounds

 

 
Backshop
Most shippers probably don't want to pay the premium for the expedited service.

 

Well, here it is.  The people in the operating department insist on coming up with reasons why it won’t work instead of trying to figure out how to make it work.
 
OK, just leave the UPS service alone.  It’s worked for years.  No sense messing with it.  But, if UPS will pay for such service why wouldn’t Yellow, FedEx, etc. pay for it?  Go find out.
 
Marketing and market development are glaring weak spots for today’s railroads.  There’s a whole lot of freight out there moving by truck that they could profitably handle.  But the marketing people face continual resistance from the operating people.  I took to calling it the “Non-Operating Department” because their goal seemed to be to not operate trains. 
 
One day they just decided to not run a train that carried UPS.  They didn’t bother to tell anyone.  I took the first phone call from UPS. Good Lord! I have never, before, or since, dealt with anyone that angry. The train was eventually run as UPS had higher up contacts than me.  What kind of idiots would just kill a UPS train?  
 
The good marketing people will leave for other jobs.  Jobs where they don’t have to deal with railroad operating departments.
 

First, I'm not the "operating department".  Second, all you have to do is look at what UPS charges per package vs what an LTL carrier charges per pallet.  UPS is a premium service.  You need to leave the 1980s because Yellow is only a bit player anymore and has been for years.  

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Posted by zugmann on Tuesday, July 26, 2022 2:43 PM

I've also heard the other argument.  

 

That The good operating people will leave for other jobs.  Jobs where they don’t have to deal with railroad marketting departments.

 

But I beleive the current problem is the operating philosophies that everyone has to play by today. Even if marketting could secure more customers, operating doesn't have the locomotives, yards, track, or manpower to make it happen.  

 

Start closer to the top. With both operating and marketting, decisions are always made without ever consulting those that actually do the work.  And if we do make suggestions, they are summarily dismissed becuase (I'm guessing) we're just labor. 

 

It's been fun.  But it isn't much fun anymore.   Signing off for now. 


  

The opinions expressed here represent my own and not those of my employer, any other railroad, company, or person.t fun any

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Posted by greyhounds on Tuesday, July 26, 2022 2:40 PM

Backshop
Most shippers probably don't want to pay the premium for the expedited service.

Well, here it is.  The people in the operating department insist on coming up with reasons why it won’t work instead of trying to figure out how to make it work.
 
OK, just leave the UPS service alone.  It’s worked for years.  No sense messing with it.  But, if UPS will pay for such service why wouldn’t Yellow, FedEx, etc. pay for it?  Go find out.
 
Marketing and market development are glaring weak spots for today’s railroads.  There’s a whole lot of freight out there moving by truck that they could profitably handle.  But the marketing people face continual resistance from the operating people.  I took to calling it the “Non-Operating Department” because their goal seemed to be to not operate trains. 
 
One day they just decided to not run a train that carried UPS.  They didn’t bother to tell anyone.  I took the first phone call from UPS. Good Lord! I have never, before, or since, dealt with anyone that angry. The train was eventually run as UPS had higher up contacts than me.  What kind of idiots would just kill a UPS train?  
 
The good marketing people will leave for other jobs.  Jobs where they don’t have to deal with railroad operating departments.
"By many measures, the U.S. freight rail system is the safest, most efficient and cost effective in the world." - Federal Railroad Administration, October, 2009. I'm just your average, everyday, uncivilized howling "anti-government" critic of mass government expenditures for "High Speed Rail" in the US. And I'm gosh darn proud of that.
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Posted by Backshop on Saturday, July 23, 2022 11:03 AM

tree68

 

 
MP173
Also there is a daily move of coke from Demmler, Pa to US Steel in Gary moving on B156/B157....seems like a daily move anyway.

 

Ahhh, the "Coke Express."  It does seem to be a daily move through Deshler.  

Of course, there are the empties going back for "deposit," too.

It's the real thing...

 

Yep.  I believe it's handed of by the Union RR, who picks it up in Clairton.

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Posted by Backshop on Saturday, July 23, 2022 11:02 AM

greyhounds

 

 
MP173
Would love to know what UPS pays for this train plus the corresponding eastward movement of similar size which departs Chicago around 230am Thursday with arrival scheduled in North Bergen around 0001 on Friday morning.  

 

That is "Moving It."

IF they could/would do that more than once per day with longer trains they'd own almost every pound of surface freight between Chicago and New York.

 

Most shippers probably don't want to pay the premium for the expedited service.

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Posted by greyhounds on Friday, July 22, 2022 10:00 PM

MP173
Overall revenue was up 28% with net income flat.  Go figure.

OK, I will.

Their costs went up too.  So, they had more revenue but also more costs.  This inflation thing sucks.

They have offered to pay employees more than the contracted rate.

 

 

 

"By many measures, the U.S. freight rail system is the safest, most efficient and cost effective in the world." - Federal Railroad Administration, October, 2009. I'm just your average, everyday, uncivilized howling "anti-government" critic of mass government expenditures for "High Speed Rail" in the US. And I'm gosh darn proud of that.
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Posted by tree68 on Friday, July 22, 2022 5:25 PM

MP173
Also there is a daily move of coke from Demmler, Pa to US Steel in Gary moving on B156/B157....seems like a daily move anyway.

Ahhh, the "Coke Express."  It does seem to be a daily move through Deshler.  

Of course, there are the empties going back for "deposit," too.

It's the real thing...

LarryWhistling
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Posted by MP173 on Friday, July 22, 2022 11:47 AM

CSX is still handling coal out of WVA and Southern Indiana.  Also there is a daily move of coke from Demmler, Pa to US Steel in Gary moving on B156/B157....seems like a daily move anyway.

Ed

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Posted by BaltACD on Thursday, July 21, 2022 1:15 PM

MP173
Balt:

Perhaps I was unclear.  The I1/I2 UPS trains only run between Chicago and New Jersey. The balance of the movements is by truck...and has been for years.  BNSF is not having service disruptions on this movement, although it sounds as if they are having plenting of "issues".

If anyone is interested, CSX just released their 2q22 results.  Commodity volumes, revenue, and revenue per unit were disclosed.  Here is the revenue per "unit" based on groups along with the percentage increase YoY.

Chemicals          $4036 (per carload)     11% increase

Ag                       3433                          9%

Mineral                 1889                          8

Auto                     3153                         12

Forest                   3392                            9

Metals                   3130                           9

Fertilizer                2185                          11

Intermodal             793                            17%

Coal                      3657                           58%

No doubt the fuel surcharges had quite an impact on these revenue/unit increases.  

What I do not understand is the 58% increase in carload revenue for coal.  Coal loads were down 10% from 183,000 to 173,000. For the 90 day period CSX handled an average of 1922 coal loads per day.

Overall revenue was up 28% with net income flat.  Go figure.

ed

Unclear you were - I was presuming all rail movement CSX Chicago BNSF.

CSX has been crowing for years about their 'pricing power' ie. they can raise prices and the customers have little alternative.  It has been several reporting periods wherein CSX has reported decreased volumes and increased revenues.

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Posted by MP173 on Thursday, July 21, 2022 12:44 PM

Balt:

Perhaps I was unclear.  The I1/I2 UPS trains only run between Chicago and New Jersey. The balance of the movements is by truck...and has been for years.  BNSF is not having service disruptions on this movement, although it sounds as if they are having plenting of "issues".

If anyone is interested, CSX just released their 2q22 results.  Commodity volumes, revenue, and revenue per unit were disclosed.  Here is the revenue per "unit" based on groups along with the percentage increase YoY.

Chemicals          $4036 (per carload)     11% increase

Ag                       3433                          9%

Mineral                 1889                          8

Auto                     3153                         12

Forest                   3392                            9

Metals                   3130                           9

Fertilizer                2185                          11

Intermodal             793                            17%

Coal                      3657                           58%

No doubt the fuel surcharges had quite an impact on these revenue/unit increases.  

What I do not understand is the 58% increase in carload revenue for coal.  Coal loads were down 10% from 183,000 to 173,000. For the 90 day period CSX handled an average of 1922 coal loads per day.

Overall revenue was up 28% with net income flat.  Go figure.

ed

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Posted by BaltACD on Thursday, July 21, 2022 8:50 AM

charlie hebdo
 
MP173
This is the train which runs only 1x per week to Chicago in which the UPS trailers are then trucked to SoCal for guaranteed Friday (4 day delivery).  this train used to continue on via Santa Fe but was dropped due to service disruptions to other trains (had to maintain a fast schedule for the UPS loads which screwed up other trains). 

And that is the discouraging part.  The longest part of the haul has to be trucked.

Is BNSF absorbing the OTR drayage costs for the service failure of their On The Rail portion of the haul?

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Posted by charlie hebdo on Thursday, July 21, 2022 8:01 AM

MP173
This is the train which runs only 1x per week to Chicago in which the UPS trailers are then trucked to SoCal for guaranteed Friday (4 day delivery).  this train used to continue on via Santa Fe but was dropped due to service disruptions to other trains (had to maintain a fast schedule for the UPS loads which screwed up other trains).

And that is the discouraging part.  The longest part of the haul has to be trucked.

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Posted by SD60MAC9500 on Thursday, July 21, 2022 6:14 AM
 

MP173

I monitor these CSX priority trains almost on a daily basis on their passage thru Deshler and Berea.  The foundation might be crumbling on their boxcar business, but the intermodals, particularly the "mail trains" run tight.

 

ed

 

The kicker here, CSX has the highest average IM on time arrival out of all the C1's right now. Last time I checked CSXT was averaging 95%.

 
 
 
 
Rahhhhhhhhh!!!!
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Posted by greyhounds on Wednesday, July 20, 2022 5:24 PM

MP173
Would love to know what UPS pays for this train plus the corresponding eastward movement of similar size which departs Chicago around 230am Thursday with arrival scheduled in North Bergen around 0001 on Friday morning.  

That is "Moving It."

IF they could/would do that more than once per day with longer trains they'd own almost every pound of surface freight between Chicago and New York.

"By many measures, the U.S. freight rail system is the safest, most efficient and cost effective in the world." - Federal Railroad Administration, October, 2009. I'm just your average, everyday, uncivilized howling "anti-government" critic of mass government expenditures for "High Speed Rail" in the US. And I'm gosh darn proud of that.
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Posted by MP173 on Wednesday, July 20, 2022 4:03 PM

I monitor these CSX priority trains almost on a daily basis on their passage thru Deshler and Berea.  The foundation might be crumbling on their boxcar business, but the intermodals, particularly the "mail trains" run tight.

 

ed

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Posted by BaltACD on Wednesday, July 20, 2022 1:23 PM

tree68
 
BaltACD
I have no real insight into the contracts between UPS and railroads.  

Watching Deshler, one rarely sees the "UPS" train pass through town at anything but track speed.

A hallmark of the effort CSX puts into handling UPS business.  Even in the PSR age.

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Posted by tree68 on Wednesday, July 20, 2022 1:20 PM

BaltACD
I have no real insight into the contracts between UPS and railroads. 

Watching Deshler, one rarely sees the "UPS" train pass through town at anything but track speed.

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Posted by CSSHEGEWISCH on Wednesday, July 20, 2022 12:05 PM

UPS must be paying a pretty steep rate for railroads to take such extraordinary measures to keep the customer satisfied.

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Posted by BaltACD on Wednesday, July 20, 2022 11:38 AM

MP173
The CP Fact Book is a great resource...thanks JayBee for posting the link.

Each quarter the publically traded rails will publish their quarterly report.  Tucked inside those reports are a similar format with the factual information for different commodities with carloads, revenue, average revenue, etc. 

One can determine the revenue and growth of each commodity along with the revenue per carload.

For the most part, the revenue per carload has been rising (dramatically) over the past 10 years, except for coal, where the rails have dropped rates to meet demand on a shrinking market. 

I find the intermodal rates of interest.  In the east the unit rate is around $700 - $800.  Thus a 250 container Chicago to New Jersey train would average about $175-$200,000.

I find it interesting to see the premium trains (primarily UPS) which are moving with 40-60 trailers and container.  Obviously the $700-$800 per unit rate doesnt apply, or if so, there is probably a minimum to run that train.

For example last night's CSX I1 from New Jersey to Chicago had 56 trailers/containers, of which 36 were UPS branded.  This is the train which runs only 1x per week to Chicago in which the UPS trailers are then trucked to SoCal for guaranteed Friday (4 day delivery).  this train used to continue on via Santa Fe but was dropped due to service disruptions to other trains (had to maintain a fast schedule for the UPS loads which screwed up other trains).

Would love to know what UPS pays for this train plus the corresponding eastward movement of similar size which departs Chicago around 230am Thursday with arrival scheduled in North Bergen around 0001 on Friday morning. 

ed

I have no real insight into the contracts between UPS and railroads.  The only thing I know is the railroads will jump through any number of hoops in order to prevent 'sort failures'.  Every box UPS ships via railroads (and likely all other forms of carriage) has a UPS scheduled 'sort time' at the next UPS destination for the box.  Railroad schedules work within this framework.

I do know when CSX had issues in the UPS service lanes it was not uncommon for UPS boxes to be unloaded from railcars and driven OTR by truckers to prevent getting a 'sort failure' on the UPS scorecard.

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Posted by MP173 on Wednesday, July 20, 2022 11:12 AM

The CP Fact Book is a great resource...thanks JayBee for posting the link.

Each quarter the publically traded rails will publish their quarterly report.  Tucked inside those reports are a similar format with the factual information for different commodities with carloads, revenue, average revenue, etc. 

One can determine the revenue and growth of each commodity along with the revenue per carload.

For the most part, the revenue per carload has been rising (dramatically) over the past 10 years, except for coal, where the rails have dropped rates to meet demand on a shrinking market. 

I find the intermodal rates of interest.  In the east the unit rate is around $700 - $800.  Thus a 250 container Chicago to New Jersey train would average about $175-$200,000.

I find it interesting to see the premium trains (primarily UPS) which are moving with 40-60 trailers and container.  Obviously the $700-$800 per unit rate doesnt apply, or if so, there is probably a minimum to run that train.

For example last night's CSX I1 from New Jersey to Chicago had 56 trailers/containers, of which 36 were UPS branded.  This is the train which runs only 1x per week to Chicago in which the UPS trailers are then trucked to SoCal for guaranteed Friday (4 day delivery).  this train used to continue on via Santa Fe but was dropped due to service disruptions to other trains (had to maintain a fast schedule for the UPS loads which screwed up other trains).

Would love to know what UPS pays for this train plus the corresponding eastward movement of similar size which departs Chicago around 230am Thursday with arrival scheduled in North Bergen around 0001 on Friday morning.

 

ed

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Posted by jeffhergert on Wednesday, July 20, 2022 4:15 AM

While specific contracts between carrier and shipper may be publicly unavailable, some railroads still maintain some tariffs.  The larger ones seem to want you to contact them to get a rate.  

Iowa Interstate Tariff Rates - Iowa Interstate Railroad, LLC (iaisrr.com)

Cedar Rapids and Iowa City Ry Travero - Published Rates

Watco shortlines Tariffs - Watco

Many of them also only pertain to moves only on the individual properties.  Moves beyond to another railroad will be more than the amount shown.

Jeff

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